A
loan is a type of debt. Like all debt instruments, a loan entails
the redistribution of financial assets over time, between the lender
and the borrower.

Louisiana Bank Business Loan

Louisiana Bank Business Loan

Banks are more conservative with their investment dollars. Banks
are more likely to approve a loan for an established business over
a start-up or emerging company. This is largely due to the fact
that they are investing the money of their depositors.

Government agencies such as the SBA, which work with many banks,
small business owners can get Louisiana bank business loans from banks with
a strong business plan and well prepared business loan request.
And, banks are more likely to give modest sized loans, whereas
venture capitalists are looking for much larger deals.
Banks also looks into the factor that whether you are making your
own investment in the business or not. A bank is more likely to
approve a loan if (pending a solid business plan) they see that
the owners are investing a good percentage of the necessary start
up capital into the business.

In order to maximize your chances of receiving approval on
Louisiana bank business loan from a bank it is wise to look at the situation from
the standpoint of the lender. A lender wants to know:
• how this business will operate and why it is anticipated that it
will make money
• how the money will be used
• How you plan to repay the loan and over what time frame
• whether you are willing to take a significant financial risk in
the business
• whether you are responsible and can manage this business
• whether anyone else is involved in management or operations and
that they will also be responsible for the proper use of the money
from the loan

The smaller the business, the more closely the individual behind
it will be evaluated. In small businesses, sole proprietorships or
partnerships, are closely tied to the experience, know-how and
overall character of the owner (s). Therefore, you need to make
sure that you get your own financial records in order before
asking for a bank (or any lender) for money to start a business. A
solid personal credit rating is also very important since the
small business is typically an extension of the individual
starting it.